The petitioner is aggrieved of the detention of goods brought by him (on the strength of Exts.P2, P4, P5 etc), which was detained by the 1st respondent/The Commercial Tax Inspector, issuing Ext.P14 notice under Section 47(2) of the KVAT Act doubting evasion of tax and demanding security deposit as specified therein, which made the petitioner to approach this Court by filing the writ petition.
2. The learned Government Pleader appearing for the respondents submits on instructions and with reference to the materials on record that, due to the defects noted as per Ext.P14, the goods had to be detained in tune with the relevant provisions of law, doubting evasion of tax, and demanding security deposit.
3. The reasons for detention shown are in the following terms:
“The vehicle No. KL 09 AD 7581 reached the check post from outside the state with Transit Pass No. 320921/2113/2014-15 on 20.10.2014 at 8.20 AM for surrender the same at this Check Post. On verification of accompanying documents 3 invoices with 8F W.P.(C) No.28464 of 2014 2 declaration and transit pass surrendered for issuing exit pass. But on physical verification of the vehicle an excess quantity of sanitary fixtures and plumping items value Rs.3,26,464/- is found kept in the vehicle which is not declared in the transit pass ad 8F declaration filed at the border Check Post. Therefore there is an intention from the side of the driver of the vehicle is suspected in order to evade payment of tax due to the Government of Kerala. Hence Security deposit (14.5X2) and tax (14.5%) is demanded on the estimated value.
Value Estimated 3,30,000/- - SD=95700+Tax 47850=Total=1,43,550”
4. After hearing both the sides, this Court finds that this is a matter which requires to be finalized by way of adjudication proceedings under Section 47(6) of the KVAT Act. But, for that reason, the goods need not be detained and the same shall be released to the petitioner forthwith, on satisfying '25%' of the security deposit demanded vide Ext.P14 and on executing a 'simple bond' without sureties for the balance amount. This however shall be without prejudice to the rights and liberties of the respondent/competent authority to proceed with the adjudication proceedings, which shall be finalized in accordance with law, as expeditiously as possible at any rate, within 'three months' from the date of receipt of a copy of this judgment.
The petitioner shall produce a copy of the judgment, along W.P.(C) No.28464 of 2014 3 with a copy of the writ petition, before the concerned respondent, for further steps.
The writ petition is disposed of.
SD/-
P.R. RAMACHANDRA MENON, JUDGE.
sp